Directorate of Defense Trade (DDTC)

[n24wheel]

DDTC has a program called International Trade in Arms Regulation (ITAR). We need to learn more about it because it will and has already started putting some firearm parts manufacturers out of business with the extremelly high tax. You not only have to deal with BATF but now also the State Department. STI products in 3 years went from paying $750 dollars per year to $18,000 dollars per year without notification. Don't pay the tax you are immediately closed and face federal prosecution. This will crush small business firearm parts manufacturers.

For example if you cast bullets and sell them to your neighbor you have to register you need to file with the DDTC.

Under subsection 1(a) of the ITAR includes all firearms, barrels, "military" scopes, components, parts, accessories and attachments (C-more sites and even moon clips for revolvers qualify)

Subsection III includes manufacturers of ammunition, bullets, and technical data for the production of the above also have to register.


http://www.pmddtc.state.gov/regulations ... icial.html

[SomeGuy]

Isn't that specifically for import/export, and not domestic?

[n24wheel]

Nope, Not anymore. Brownells and other catalogs have sent out compliance notes to all their vendors. Some have already discontinued their products. According to Front Sight Magazine put out by the United States Practical Shooters Association the state department says that any item that is firearm related is included except soft goods like bags. One exception is the sale of a Dillion Press but any springs from a manufacturer like Wolffe Spring is under the State Dept DDTC. STI, Wilson Combat all have to file.

[C. Richard Archie]

It appears from a quick perusal that this involves only items that are available for export and import, where does it flesh out that production and sale of gun parts in the US, for sale in the US fall under it's auspices?

[C. Richard Archie]

What I have been able to find so far:

The only part you'd have to worry about is selling to another country or selling "for export" - that is, selling to a foreign national who intends to take or send the material to another country. If you cast bullets in KY and sell them in KY to a US citizen (or to a US citizen in TX, ME, CA, wherever), you do not need any Customs or DDTC registration. If you cast bullets in WV and sell them to a Canuckian, you have to file a registration but pay no Customs. If you sell them to a Belgian who intends to re-sell them, you have to register, pay Customs duties, and warn him in writing that the materials cannot be sold to the countries listed above. If you sell them to an Iranian or Cuban ... you're in trouble.

And there are no "taxes" per se. There are customs duties but only on the value of what you export (unless it stays within NAFTA or goes to one of the other Free Trade Zones, like Australia).

Please correct me if I am wrong.

[n24wheel]

According to the USPSA Front Sight Magazine. "New rules published on Sept, 28,2008 explosively increased fees. Futhermore
DDTC has expanded it's tax base to include ALL "ARMS" trade in the United States. Civilian firms with NO military or export connection whatever are getting ominous letters from their wholesalers (like Brownells) to make sure they are in compliance with ITAR. ITAR now calls for government registration of all arms manufacturing. If they don't issue a permit they are out of business. "bullets", firearms", and "accessories and attachments" are included.

This apparently came about when Bush 2 signed a bill that told DDTC they had to be 75% self funded instead of funded by the gov't as they were.

They say what needs to be done is to contact Sen Chuck Grassley (casework@grassley.senate.gov) and Sen. Jim Bunning 316 Hart Senate Office Building. Wash, DC 20510 (Senate Budget Committee) and ask them to stop the high fees the DDTC are charging to the firearms and accessory companies.

That is all I know about DDTC/ITAR